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Value Chains and WTO
Disputes
Compliance at the dispute
settlement mechanism
Aydin Baris Yildirim
Value Chains and WTO Disputes
Aydin Baris Yildirim
Value Chains
and WTO Disputes
Compliance at the dispute settlement mechanism
Aydin Baris Yildirim
World Trade Institute
Bern, Switzerland
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer
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Dedicated to
Annem ve Babam’a
Acknowledgments
This book owes its existence to many individuals and institutions. I would
first like to extend my thanks to Dirk De Bièvre and Arlo Poletti, my
doctoral supervisors, whose help was invaluable in finishing my disserta-
tion that served as the basis of this book. I started my doctoral training
under their care and with their guidance I was able to finish success-
fully my program and received two very competitive grants that led to
me finally finish this book. I could not ask for a more supportive team
of supervisors and I will always remain grateful for their existence. I am
also lucky enough to thank the jury members of my doctoral dissertation,
Francesco Giumelli, Peter van Aelst, Peter Bursens, and Leonardo Baccini.
Leo’s help at the earlier stages was quite critical and his kind support later
on helped me very much. Bernard Hoekman of the European University
Institute, who was my mentor during my time there, was kind enough to
provide feedback on an earlier draft which made all the difference.
I owe many thanks to my family and friends as well. My mom, dad,
and my brothers were always on my mind during the past few years as
I finished my dissertation, completed my fellowships, and finally wrote
this book. Especially, my mom has been instrumental with her wonderful
support over the years. My dear friend from Brussels Max helped me
more times than I could count and Leo, Meron, and Kristof were so very
helpful—I will never forget their help. My friends and colleagues from
Florence and the EUI, especially Andrea, Silvia, Per, and Anna provided
an amazing environment for me to finalize the book.
vii
viii ACKNOWLEDGMENTS
1 Introduction 1
1.1 Cooperation and Discord in the International Trade
Regime 2
1.2 The Puzzle 8
1.3 Proposed Explanations and the Argument in Brief 11
1.4 The Structure of the Book 15
References 16
ix
x CONTENTS
5 Conclusion 97
5.1 Main Findings and the Contributions 98
5.2 Twenty-First-Century Trade Tensions in the Context
of Value Chains 102
References 105
References 145
Index 161
List of Figures
xi
List of Tables
xiii
CHAPTER 1
Introduction
1 For a brief overview, see Patrick Barkham, “Banana Wars Explained,” The Guardian,
March 5, 1999. Accessed on February 12, 2017 via: https://www.theguardian.com/
world/1999/mar/05/eu.wto3. See also Wall Street Journal, “WTO Allows Ecuador to
Impose Sanctions in EU Banana Dispute,” March 19, 2000. Accessed on February 12,
2017 via: https://www.wsj.com/articles/SB95345909977897928.
2 See, United States —Definitive Safeguard Measures on Imports of Certain Steel Products.
4 A. B. YILDIRIM
3 See, among others, John Plender, “Trump Trade Blind to Global Cost of Protec-
tionism,” Financial Times, 31 January 2017. Accessed on March 2, 2017 via: https://
www.ft.com/content/2bee373a-e786-11e6-893c-082c54a7f539. Katie Allen, “Trump’s
Economic Policies: Protectionism, Low Taxes and Coal Mines,” The Guardian, November
9, 2016. Accessed on March 2, 2017 via: https://www.theguardian.com/us-news/2016/
nov/09/trumps-economic-policies-protectionism-low-taxes-and-coal-mines.
1 INTRODUCTION 5
4 See for instance, Richard Lardner, “Rising Backlash as US Firms Seek Trump’s Steel
Tariff Waiver,” The Associated Press. Accessed on 22 August 2018 via: https://globalnews.
ca/news/4359349/rising-backlash-as-us-firms-seek-trumps-steel-tariff-waiver/.
5 See for instance, Shawn Donnan and Vladimir Waldemir, “Industry Backlash to Trump
Tariffs Grows with Legal Challenge,” Financial Times. Accessed on 10 September 2018
via: https://www.ft.com/content/7e35b986-7a20-11e8-bc55-50daf11b720d.
18 A. B. YILDIRIM
KISFALUN VUOKRAAJA.
»On hyvin surullista, että rakastan heitä kaikkia. En voi viedä heitä
kaikkia Kisfaluun, sillä siellä ei ole tilaa niin monelle eikä äitini
sellaista sitäpaitsi hyväksyisikään. Ja jos valitsen, niin voinko valita
satojen kaunottarien joukosta käyttäytymättä hyvin raa'asti muita
yhdeksääkymmentäyhdeksää kohtaan, joita myöskin rakastan»?
LAINAAJA JA KORKO.
»En tiedä, András, mikä häntä vaivaa, mutta sen tiedän varmasti,
ettei hän rakasta minua enää», vastasi emäntä värisevin äänin.
»Hän ei ole lyönyt minua kolmeen viikkoon».
»Tein voitavani. Tarjosin niin paljon kuin hän vain olisi halunnut,
mutta hän ei halunnut myydä».
»Hän, hän lahjoitti minulle sata floriinia tänä aamuna, ja», lisäsi
juutalainen sähähtäen omituisesti hampaittensa välistä, »sitäpaitsi
hyvän päivällisen».